POSCO Joint Venture, page-28

I reckon deal will be as follows:

- JV partner to cover remaining cost of SdV development USD $200m
OR JV partner pays $300m to double capacity to 50,000tpa, or mix traditional evaporation pond technology with proprietary technology (e.g. POSLx)

- JV partner or other party offtake agreement for 25,000tpa, with advance payment (say USD $25m)

- JV partner (if indeed it is POSCO) to offer partnering on processing plant being built at General Guemes Industrial Park (say 25% of output)


In a down market, I think the above would be a reasonable deal.

For GXY, that would likely mean:

SdV fully funded, pathway to incremental production from proprietary technology, full production ramp up commencing in late 2021, early 2022. Small production, say 5000 tpa from late 2020, early 2021 - 5000 t worth approx $70m USD, cash margin of $30m USD.

GXY announce an share buyback worth $25m, of undisclosed duration up to a strike price of $2.50

Mt. Cattlin continues to chug along, 200,000 tpa, generating free cash flow for SdV development, divvies, other bottom of cycle Li investments.

A market cap of <$800m given this growth potential is hilarious IMHO!